With Presidents’ Day approaching and consumers having taken out another $27 billion in auto loan debt in the third quarter of 2018 alone, the personal-finance website WalletHub today released the first-quarter installment of its Auto Financing Report along with its in-depth analysis of 2019’s Cities that Overspend on Cars as well as accompanying videos.
Below are some of our key findings from each of the two reports:
|Cities that Overspend on Cars||Cities that Spend the Least on Cars|
|Lake Placid, FL||Scarsdale, NY|
|Leesville, LA||Bronxville, NY|
|Rio Grande City, TX||Los Altos, CA|
|Crosby, TX||Darien, CT|
|San Juan, TX||Mill Valley, CA|
|Dahlonega, GA||Westport, CT|
|Mercedes, TX||Cupertino, CA|
|Donna, TX||Palo Alto, CA|
|Cordele, GA||Birmingham, MI|
|Bastrop, LA||Ridgewood, NJ|
|Alamo, TX||Bloomfield Hills, MI|
|Moultrie, GA||Lexington, MA|
|Natchitoches, LA||Ridgefield, CT|
|Brownsville, TX||Saratoga, CA|
|Willis, TX||Chevy Chase, MD|
|Eagle Pass, TX||Garden City, NY|
|San Luis, AZ||Westfield, NJ|
|Tolleson, AZ||Melville, NY|
|Roxboro, NC||Newton, MA|
|Pharr, TX||Oceanside, NY|
Auto Financing Report:
- Interest rates for new cars are at one of their lowest points in three years, with the average new-car loan today charging 12 percent less interest than the average used-car loan.
- Compared with buyers who have excellent credit, those with fair credit will spend about four times more, or about $6,199, in interest over the life of a five-year, $20,000 loan when financing a vehicle.
- The best options for financing a new car include credit unions (rates at 17 percent below average) and car manufacturers (rates at 13 percent below average). Secondary options include regional banks (rates at 8 percent above average) and community and small banks (rates at 10 percent above average).
- Car manufacturers continue to lack transparency when it comes to leasing offers, with the average automaker receiving a WalletHub Transparency Score of 4.5 out of 10.